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Suitors circle care homes

BUYOUT FIRMS are stalking Britain’s biggest nursing home operator months after private equity was criticised over the demise of Southern Cross.

A raft of financial investors has made it through to a second round of bidding for Four Seasons Health Care. The company has 500 properties and cares for 25,000 elderly residents. It became Britain’s No1 operator last year after the collapse of Southern Cross — a demise some have partly attributed to past ownership by Blackstone, the private equity giant.

Among the shortlisted private equity suitors are Bain Capital, CVC, Formation Capital, and a consortium that includes Patron Capital. A firm belonging to the Hong Kong billionaire Li Ka-shing is also thought to have made it through.

Hugh Osmond, the pizza-to-pubs entrepreneur, submitted an offer but it is not clear whether he is still in the running. Bids are thought to value the company between £800m and £900m.